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This Cocoa ETF, Up 6.9%, Outperformed All Other ETFs Today

Published 01/13/2017, 01:33 AM
Updated 05/14/2017, 06:45 AM
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The iPath Pure Beta Cocoa Exp 18 Apr 2041 (NYSE:CHOC) outperformed all other non-leveraged, non-inverse exchange traded products in the U.S. today, producing a +6.91% one-day return and outperforming the wider markets by a total of 7.16 percentage points.

Behind The Gains

CHOC closed today at $34.33 per share, up $2.22 (+6.91%). Putting this move in context, the S&P 500 index — largely considered the most popular and useful benchmark for equity performance — closed down $-0.57 (-0.25%) on the day.

CHOC’s trading volume today was a total of 2,815 shares, which was a decrease of 22% versus its average daily trading volume of 3,609. Rising trading volume generally an indicator of increased demand for a particular security, and is typically associated with a specific news event or trend that draws investors into or out of specific asset classes, or sectors or subsectors within those classes.

Including any dividends as well as today’s gains, CHOC has now returned a total of 7.52% year-to-date, versus a 1.34% gain in the S&P 500 during the same timeframe.

A Look Under The Hood

iPath Pure Beta Cocoa is a Commodity-focused product issued by iPath. Its expense ratio of 0.75% makes it the #54 cheapest ETF among 121 total funds in the Commodity ETFs category.

CHOC currently boasts a paltry $3.30M in assets under management (AUM), placing it #90 of 121 ETFs in its category, and #1720 of 1917 total ETFs in the U.S. exchange traded universe.

The investment objective of the iPath Pure Beta Cocoa ETNs (the “ETNs”) is to provide exposure to the Barclays Cocoa Pure Beta TR Index (the “Index”). The Index reflects the returns that are potentially available through an unleveraged investment in the futures contracts in the cocoa markets.

CHOC SMART Grade

CHOC currently has an ETF Daily News SMART Grade of D (Sell), and is ranked #94 of 123 funds in the Commodity ETFs category.

For more information about this ETF, including full ratings, news, data, and more, please visit CHOC’s ticker page.

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